6 Areas to Evaluate During a Fulfillment Partner Warehouse Tour

A facility tour is a critical first step in the process of evaluating a possible fulfillment partner.  There’s no substitute for putting your eyes on the facility and process. You can look at flowcharts and presentations, but seeing it in action reveals how operations are truly run.

Not all warehouses are fulfillment centers. Not all fulfillment centers are appropriate for every business. It’s important to find out if a partner’s facility aligns with the needs of your brand. Going on a tour allows you to see if a partner’s capabilities are a reality, in addition to giving a peek at the culture of the organization.

Touring a warehouse or fulfillment center is a critical step in evaluating an order fulfillment and warehousing partner. Seeing the operation in person will help you validate what that company has communicated in the sales process and meet the people who will be serving your customers. Meeting the team will help you understand the company culture and get a feel for what the relationship and communication will be like.

What to look for during a fulfillment partner warehouse evaluation

These answers will shape whether or not a partner’s facility is compatible with your business.

Ask to see the specific fulfillment process that your business is looking for

If you have product bundling or kitting requirements, look for examples of similar programs within the fulfillment center.

Is the warehouse staff following SOPs for properly handling product and picking orders? SOPs and defined processes should be documented and available for staff and team members.

You should see the process from the moment your inventory arrives at the receiving dock to the time it leaves the warehouse. The path of an order starts with receiving. You’ll want to see if there is an organized receiving process for products before they are put away into their respective places in the warehouse. Without efficient and accurate receiving, product can get lost or misplaced, leading to negative impacts on order time, costs, and customer experience.

Check if inventory locations are properly identified and marked. Upon receipt, products are scanned into the system and put away in their respective locations. Warehouse staff need to know where to place product in order to accurately track inventory.“

Ask to be walked through the path of an order

You should see the process from the moment your inventory arrives at the receiving dock to the time it leaves the warehouse.

The path of an order starts with receiving. You’ll want to see if there is an organized receiving process for products before they are put away into their respective places in the warehouse. Without efficient and accurate receiving, product can get lost or misplaced, leading to negative impacts on order time, costs, and customer experience.

Check if inventory locations are properly identified and marked. Upon receipt, products are scanned into the system and put away in their respective locations. Warehouse staff need to know where to place product in order to accurately track inventory.

Ask about capacity and flexibility

Does the facility have enough capacity for your inventory, and is there room to grow as your business needs change? Understand where and how your inventory will be stored at the fulfillment center. If your product will be located in multiple locations in the warehouse, learn how the replenishment process works to ensure accuracy.

Also, if there is any seasonality or order fluctuations to your business, share that with the fulfillment provider and ask how they will manage their space and staff to accommodate those fluctuations. The better the planning and collaboration on business changes, the more successful a fulfillment provider will be in supporting your business.

How are returns are handled?

Returned items should be properly identified and placed in a designated place in the building. Dispositions should be defined and available for warehouse team members to reference and adhere to when the returned product arrives

Who should you meet or talk to during the tour?

One of the most crucial people to connect with during a tour is the team lead or supervisor. Have someone walk you through an order, so that you can see what the workers on the front line are doing.

Also meet with those who are relevant to your business and who understand the pain points you may have experienced in the past.

It is important to meet the team handling your product to understand how they will represent your brand to customers. Are they professional, friendly, and engaging? Are employees treated well, and will they represent your brand well? This can result in positive customer interactions.

Is the organization’s culture reflected in the operation and communicated to staff? Are company values, organizational processes, or philosophies present and clearly communicated in the building?

Are team members and staff aware of them? How are they incorporated into daily operations?  When understood and properly communicated, values and philosophies have a direct impact on operational efficiency and customer experiences.  Staff and team members operate according to values and philosophies that drive positive results.

Process evaluation during a warehouse tour

Is cleanliness and organization a top priority?

When touring a warehouse, you should always be on the lookout for how clean and organized the facility is. Are there systems in place that all employees are expected to follow? Everyone should own a part of the warehouse and be rated on it regularly. The floor should be swept and clean, but organization is important too. Loose pallets should be stacked. Everything should be in its home. Color-coded systems and taped-off areas are great indicators of structure.

How a fulfillment provider manages their warehouse is an indication of how they are going to manage your inventory. Strict inventory control practices ensure orders are fulfilled on-time and customers are happy.

What certifications does the facility hold?

If your inventory requires special certification or standards, you’ll want to make sure the facility adheres to those. For example, if the facility is FDA registered, they should be able to show pest control practices, cleaning logs, and product segregation protocols. You may not want to work with a warehouse that stores pet food near consumable goods or mixes organic inventory with incompatible items.

Safety, professionalism, and security

On every tour, you’ll want to cover the facility’s basics and specs. Ask questions about perimeter access and access to the facility. How is that access monitored?

Ask about pre-employment screening. Everyone, whether permanent or temporary, should undergo a background check and screening before working in the facility. During the tour, you may also interact with employees, and you’ll be able to experience firsthand their professionalism level. Some companies enact a dress code to ensure uniformity and professionalism.

But you also want to make sure that everyone in the warehouse is taking safety seriously. Ask about safety protocols and best practices. Look for safety boards, cleanliness metrics, and signs of routine practice. There’s often a correlation between organization and safety.

Sustainability practices

Environmental responsibility is a business imperative, and many fulfillment providers put sustainable practices in place. Ask what they’re doing to ensure sustainability. When equipment like forklifts need replacing, are they upgraded to electric? Inquire about recycling programs, sustainable packaging options, and motion sensor lights.

If sustainability is a priority for your business, learn how your fulfillment provider can help partner with you on this initiative.

What technology should be in a warehouse?

Technology should power the process of physical activity in a warehouse. Technology should be used to drive efficiency, accuracy, and provide necessary visibility, whether it’s the receiving process, inventory management, order picking, packing, or shipping. Ask what warehouse management systems (WMS) are in place and whether they provide client dashboards with access to inbound receipts, order status, and inventory levels.

Technology and automation should also be tied to staff training and execution. A fulfillment center should be able to demonstrate how it reduces human error, improves order accuracy, and uses automation to optimize operations.

Warehouse fulfillment: The Right Capabilities Will Ensure the Right Results and Customer Experience

It’s important that your partner has processes in place that will advance your business. A warehouse tour, whether virtual or in-person, gives you the chance to evaluate a partner’s ability to deliver accuracy, visibility, and efficiency across their fulfillment operation.

Please contact our team with any questions or to schedule a virtual fulfillment center tour. Our supply chain experts are happy to consult with you on how to provide a solution to meet your specific needs.